2001 (6) TMI 314

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....es, issued a show cause notice. They represented against the same to the Central Excise Authorities in Bangalore and to the Central Board of Excise and Customs, New Delhi, regarding the proposal of classification of the 'Embroidery Thread' being manufactured by them as being 'Sewing Thread' and pursuant to that, fresh samples were drawn and were sent to tests to the Chief Chemist of the Central Revenue Control Laboratory, New Delhi. After a lapse of 14-15 months, another show cause notice dated 9-12-1996, was issued by the Commissioner of Central Excise, Bangalore alleging that the appellant was engaged in the manufacture of 'Sewing Thread' declared by them as 'Embroidery Thread' in the clearance document. He proposed this product to be fal....

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....treated with wax, which means that it has been dressed for use as sewing thread. In view of the opinion given by the Chief Chemist that the samples are more akin to "Sewing Thread" rather than "Yarn" the correct classification of the thread manufactured by the assessee is only under Chapter Heading No. 5401.20 and not under 5403.41 as viscose rayon yarn". We find from the decision of the ld. Commissioner to correctly classify the goods manufactured, during the period of the demand in the case, under Heading 5401.20 is not correct in law and procedure, as no such Heading as 5401.20 was in existence during that period nor was the notice given in classification under Heading 5401.20. The notice as recorded by the ld. Commissioner in his ord....